Glasgow-based Weir Group has boosted its technological capabilities with the expected acquisition of Motion Metrics for an initial £89m.
The deal is likely to go through in the fourth quarter of this year, and it could increase by a further £59m by the end of 2024 depending on revenue and profit performance.
Integration costs are predicted to reach £3m.
Motion Metrics is a Canada-based mining technology firm, which develops artificial intelligence and 3D machine vision technology for mines worldwide.
The firm creates smart, rugged cameras that can assess key mining issues such as equipment performance, payloads, and rock fragmentation.
Its products aim to improve miner safety and efficiency, alongside the sustainability of operations.
So far this year, Motion Metrics has generated revenues of £9m despite difficult market conditions over the past 18 months since the outbreak of the pandemic.
As part of the agreement, its headquarters in Vancouver will become Weir’s global centre for excellence in AI and machine vision technology.
Motion Metrics will also become part of Weir’s ESCO division, with its team of researchers, data scientists and engineers supporting Weir’s broader product portfolio.
ESCO is a manufacturing specialist that was acquired by Weir in 2018 and has since been integrated into the company.
Jon Stanton, Weir Group CEO said: “This acquisition is fully aligned with our strategy and our commitment to grow ahead of our markets, expand our margins and significantly reduce our customers’ environmental footprint